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How To Fix A BAD Credit Score ASAP

what's up you guys it's Graham here so a

few weeks ago I made a video going over

all of the techniques and tricks that

you could use to get past that legendary

800 credit score all without costing you

any money out of pocket and even though

the strategies work really really well

especially if you destroy the like

button I felt like it would be a good

idea to make a follow-up video to that

for anyone without a good credit score

who wants to know how to turn that

around and fix it as soon as possible so

that means that if your credit score is

under about 680 or so this video is for

you because if you don't make an effort

to get this handled it will cost you

money and no one likes being costed

money just think of it this way if you

don't have a good credit score and you

don't take the time to fix it you're

gonna be charged a higher interest rate

any time you apply for a credit card an

auto loan a mortgage you name it it's

going to cost you more money or they're

just not gonna give you a loan in the

first place and I'm not sure which one

of those is worse so here's exactly what

you could do about it and how you can

fix it even if you have late payments

and accounts and collections and let's

set a good expectation here that none of

this is gonna happen overnight it's not

like you're gonna do all of this and

then tomorrow you're gonna be rolling in

mortgages and loans and money it's that

it's not how it works but I will tell

you that this is gonna help and make a

huge difference over the next few weeks

to a few months and all it takes is a

small amount of effort on your part to

actually follow these techniques and

obviously to also smash the like button

through the YouTube algorithm which

dramatically helps out this channel so

with that said sit back relax and enjoy

the video

the first thing you need to do if you

have not done this already is to run

your credit report and see exactly

what's bringing it down now in terms of

where to start it's really simple a very

quick Google search will bring up a

multitude of sites that will show you

how to run your credit entirely for free

in fact credit Sesame com was the

website that sponsored one of my recent

videos and even though they're not

sponsoring this one they are a fantastic

service and I highly recommend them and

use them myself then in addition to that

you're entitled to a free credit report

every year from annualcreditreport.com

they'll give you actual information

about your credit report that's fully up

to date to every 12 months so pick one

of those options and then begin

reviewing your credit report it was a

quick side note if any website out there

wants you to pay for your report or

score than I wouldn't recommend doing it

there's so many free services out there

that will show you everything you need

to know about

your credit score without spending a

single penny so I wouldn't recommend

spending any money if you don't have to

and there you go I just saved you $9.95

next once you have your report you're

gonna be going through and reviewing it

to find out exactly what's impacting

your score negatively and typically it's

gonna be one of these number one maybe

you just don't have enough credit if

you're just building your credit score

and you don't really have that much

information to begin with then it's not

really likely that you're gonna have a

highest score that quickly if that's the

case go and watch my other video which

I'm going to be linking in the

description and that's going to show you

exactly what to do step by step the

second probably one of the most common

reasons for a bad credit score is I

shudder to say this a late payment or

late payments this is something that

will impact your credit score for seven

years or basically as long as you're

gonna have bad luck if you break a

mirror indoors so I'll show you how to

fix this shortly not the mirror by the

way the credit score I can't help you if

you've got seven years bad luck if you

break a mirror inside but I can't help

at least improve your credit score the

third look to see if you have any

accounts in collections and if you see

this it's it's pretty bad this is what

happens if you've had such a late

payment that the lender just gives up on

you and then writes it off as a total

loss then they go and sell that

delinquent debt to a third-party

collections agency who buys that debt

usually for pennies on the dollar and

usually this is gonna happen once you're

over one hundred and fifty days late on

a payment now forth look for any maxed

out amounts in your credit report this

means that maybe if a credit card where

you've spent up to the available limit

or you're just borrowing as much money

as humanly possible without paying down

the balance know if this is you just be

aware that your total credit utilization

or in other words how much credit you're

borrowing based off the credit you have

available to you is going to make up 30%

of your credit score so maxing out these

accounts is going to lower your score

dramatically if they--if look to see if

you have any foreclosures or

bankruptcies on your credit report a

chances are you should know if you have

a foreclosure or bankruptcy on your

credit report so this should not be a

complete surprise hopefully but there

are instances where identities are

stolen or things are missed reported so

it's certainly worth it to go and check

just to make sure that everything is as

it should and

from there you can figure out how best

to handle that situation to increase

your credit score so in terms of what

you could actually do about all of this

let's start right here with late

payments and this stays in your credit

report for seven years now here's how

this works lenders typically report late

payments to the credit reporting

agencies once they're more than 30 days

late so that means for instance if you

have a credit card payment that's due on

the first but you forgot to pay it on

the first and you pay it on the tenth

then chances are nothing is going to

happen except the credit card company

might charge you a late fee which

they'll almost always waive if you just

call them up and ask them politely to

refund it but after those 30 days if you

still have not paid it then chances are

yes it's going to be showing on your

credit report and in terms of how much

this impacts your credit score it's a

lot in fact you're on time payment

history makes up thirty five percent of

your overall credit score so this one is

a very important aspect to cover and

take very seriously now if you have a

late payment just be aware that the

longer it goes the worse it gets like a

90 day late payment is going to impact

your credit much worse than a sixty day

late payment which will impact your

credit score a lot worse than a thirty

day late payments and so on in addition

to that the sooner the late payments the

more it will negatively impact your

credit score

so if a late payment happened a few

months ago it's gonna be a lot worse

than if that happened five years ago

basically the longer ago it happened the

less it'll impact your score finally the

number of late payments you have will

also play a role in determining what

your credit score is I don't think I

need to say this but I'm gonna say it

anyway because you never know having

multiple late payments is a lot worse

than having just one so if you find

yourself in this position you've checked

your credit report and you see that

you've just been blasted with late

payments and delinquencies here's what

you could do about it

first pay anything off that's late as

soon as possible

like I said it only gets worse the

longer it persists or having a 30-day

late payment on your account is a lot

better than having a 90 day late payment

on your account so make an effort to pay

off your bills as soon as you possibly

can even if they're already late

otherwise if you just leave it alone and

you don't do anything about it

after about 180 days it's gonna be sent

to collections it's gonna be a charge

off and then you're gonna have a really

bad time now secondly it's always worth

it to try to negotiate the terms of the

debt and see if they will adjust your

account back to current this means you

could reach out to the lender and if

you're having a difficult time making

payments

if you might be able to work out a

payment plan the reality is that late

payments are notorious just for being

charged off once they reach a certain

point and then the lender loses a lot of

money so most companies would rather get

something than nothing and would much

rather negotiate the count it as an

entire loss the third if you've already

paid off the debt and it's still showing

on your credit report as a late payment

then it might be worth it just to call

them up and see if they could remove it

as a courtesy now let me make it very

clear they are not obligated to do this

at all but you also know what they say

you could catch more flies with honey

than with vinegar so sometimes it's

calling and asking very very politely

can go a very long way so go ahead write

them a letter see if they'll remove it

and it's absolutely worth a shot you got

nothing to lose the fourth if all of

that fails then look for any

inaccuracies in the credit report and in

the late payment and then dispute it

really quick here's a disclaimer do not

lie ever but if you find any

inaccuracies in the payment do in the

payment dates and so on you could

dispute the late payment as inaccurate

and if the company cannot prove that all

evidence is indeed correct they will go

instead and remove it doing this should

absolutely make a huge difference in

your credit score over the next few

weeks to next few months and doesn't

really take that much time to do at zero

cost to you so once you knock out those

late payments let's go on to the next

one accounts in collections and this

stays in your credit report for seven

years now like I mentioned this happens

when your more than 150 days late on a

payment the bank just thinks well you

don't we're never collecting any of that

anyway so we're gonna be writing it off

as a total loss we're gonna be selling

that debt to a third-party collections

agency for pennies on the dollar and

then it's their problem and that's

usually the point where some third-party

debt collections agency starts hounding

you on the phone saying you owe the full

amount and then starts resorting to

scare tactics to try to get you to pay

it and that collections is also going to

be showing up on your credit report now

when it comes to figuring out how to

handle this there are a few different

strategies now the first thing you

should do is try to dispute it if you

see any errors or inaccuracies like if

you think there's an error on the credit

reporting side and that you paid off the

debt but it's still showing on your

accounts then go ahead and dispute it

then once you file that disputes they

have 30 days to respond on the other

hand if you think there's an error on

the part of the debt collector you could

ask that they validate the debt to prove

it is indeed

that was the money now they're gonna

have to prove the validity of the debt

and that it's actually yours and if they

can't do that it is removed and because

debts like this are often bought and

sold multiple times over those seven

years

there's a good chance there will be an

error along the way that you could see

is and take advantage of and that way

you could have it removed and improve

your credit score the second sometimes

you can ago she ate to pay off the debt

in exchange for removing it from your

credit report now this one is a bit of a

shady gray area because technically if

the debt is true then they should be

reporting it as is but sometimes they

also want their money and they will

agree to remove it if you pay them so if

that's the case here's what you need to

know debt collectors will often pay a

small fraction of what your actual debt

is and then try to profit anything above

that so that means for example if you

have a debt of $10,000 that goes to

collections then maybe that debt

collector bought that debt for $1000 so

anything above that is going to be their

profit so sometimes that means you can

negotiate a ten thousand dollar debt all

the way down to a two thousand dollar

payoff and get it removed from your

credit reports because those debt

collection agencies would rather get

some money and some profit did not

collect anything so again it's always

worth a shot just to see if they're

gonna do this a third we should talk

about paying off a debt collector

because it's another gray area because

technically paying off a debt in

collections is not really going to

improve your credit score even though

it'll now show is paid it's still going

to be on your report that you had an

account that goes to collections and

that will stay on there for seven years

so if this is the case and you did pay

off something in collections then you

could go and file a dispute with the

credit reporting agencies they will then

try to validate that debt from the debt

collection company now at that point the

debt collection company really has no

financial incentive to respond to the

credit bureaus and a lot of the time

they won't even bother responding to it

so that means it will be removed from

your credit report within 30 days now I

do want to mention do all of this at

your own risk and certainly do your own

research before you pay off any debt

collector and always try to negotiate

that debt down and also not before

disputing the debt is actually yours and

accurate and have them verify that the

fourth if you have any maxed out

accounts on your credit report then this

is usually a pretty easy fix the credit

bureaus really just want to make sure

that you're not out there maxing out

all of your credit cards and that you're

only using a small amount of your

overall credit that you have available

to you ideally you want to be using

under 10% of your overall credit limit

so that that way you're seeing is the

safer borrower and therefore you get a

higher credit score so that means if

you're out there just maxing out your

credit cards then well first of all

don't do that but seconds the fastest

easiest fix out there is just to pay

down your credit cards so now you owe

less money that's going to almost

immediately fix your credit score within

the next week or two without anything

else needed from your end but if you

don't have enough money to pay it all

down and this sounds so weird for me to

even mention this as a solution but it

is a solution to go out there and open

up more credit now here's how this works

the credit bureaus don't care about the

dollar amount that you're borrowing all

they care about is how much credit

you're borrowing compared to the total

credit limit that you have so if you

have a $1000 credit line but you spend a

thousand dollars on it then you maxed it

out but if you have a $10,000 credit

line and you spend that exact same

$1,000 then technically you're only

using 10% of your overall credit and

that's good so one of the techniques

that I use with all of this is just to

have a lot of available credit to all of

them with really high limits that's

gonna help lower your credit utilization

and help improve your score all without

paying down any additional money please

I beg you be responsible with this one I

cannot in good conscience go in and

recommend someone who's maxing out their

credit cards just to go and get more

credit so most likely if you have a

spending problem at least acknowledge

that and the best solution for you is

just to pay down the credit cards and

that's gonna be the best for you if you

got a spending problem but if you just

have a low credit limit to begin with

then yes opening up more credit and

using it responsibly will help your

score dramatically so finally let's talk

about the worst from all of them in

terms of harming your credit and that

would be bankruptcy and foreclosure now

here's the thing

bankruptcy is going to stay on your

credit report for seven to ten years and

removing it is going to be very very

difficult if not impossible but as with

anything I mentioned if you can find any

errors or inaccuracies in the reporting

of the information then go ahead and

dispute it and it's worth trying and

also if it stays on your credit report

for longer than 7 to 10 years then

that's also worth disputing the same

also applies to foreclosures which will

stay on your credit report

for seven years if the lender is no

longer in business then also go ahead

and dispute it otherwise unfortunately

this is really one of those things

you're gonna have to work around and not

avoid in most cases removing either one

of these is going to be extremely

difficult unless you find an error so

it's more important to work around it

and improve everything else that will

boost up your score so that that way

this doesn't impact it as much now in

the past I've made a video on this

showing exactly how to build up your

credit from nothing and exactly how you

could do this step by step so instead of

going and mentioning all of that right

here in this video I'm gonna link to

that as well down below in the

description and that's exactly how you

can fix a bad credit score entirely on

your own without paying any third-party

to do it for you the process is fairly

simple it shouldn't take you too long to

do and it's going to help you save a lot

of money any time you apply for an auto

loan a mortgage a credit card and

basically anything you need to borrow

money or for anything they need to run

your credit score for this is going to

help you dramatically and again all I

ask in return is that if you found it

helpful then at least just hit the like

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you guys thank you so much for watching

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